Dáil Éireann Debate, Wednesday - 27 September 2006
1514 Ms C. Murphy asked the Minister for the Environment, Heritage and Local Government if it is envisioned that representatives of local authorities will become directors of the management companies that cater for the management of local authority owned apartment units; if so, the guidance and indemnities which will be provided for such representatives; and if he will make a statement on the matter. [29326/06]
Amharc ar fhreagra1515 Ms C. Murphy asked the Minister for the Environment, Heritage and Local Government if there are instances where local authorities have acquired housing units in private residential developments where management companies are in place; if so, if these local authorities are subject to the same management fees as other private owners; if these local authorities have opted out of such management company membership or fee payment obligations; the way in which this was achieved; and if he will make a statement on the matter. [29327/06]
Amharc ar fhreagra1516 Ms C. Murphy asked the Minister for the Environment, Heritage and Local Government the guidance given to or sought by his Department on the issue of management companies in view of the increase of apartment units within private developments owned by local authorities as a result of acquisitions made under Part V of the Planning and Development Act, 2005; and if he will make a statement on the matter. [29328/06]
Amharc ar fhreagra1551 Mr. O’Connor asked the Minister for the Environment, Heritage and Local Government the progress towards introducing the means to effectively control the operation of management companies in apartment blocks; his views on the representations made to him from Tallaght in the matter and the need for action; and if he will make a statement on the matter. [29790/06]
Amharc ar fhreagra
I propose to take Questions Nos. 1514 to 1516, inclusive and 1551 together.
Accommodation provided under my Department's social and affordable housing programmes includes a range of delivery mechanisms including new build, Part V, turnkey developments and acquisitions. The composition and ongoing management of the housing stock, including matters arising from the acquisition of apartments in private developments and consequential membership of the relevant management company consisting of all the apartment owners concerned, is a matter for individual housing authorities having regard to their particular circumstances.
In general, apartment complex management companies are constituted under the Companies Acts and are required to comply with the provisions of company law which is a matter for Minister for Enterprise Trade and Employment. I understand that the Minister for Enterprise, Trade and Employment hopes to bring proposals for amendment of company law to Government later this year, which are expected to include certain changes relevant to management companies.
As many of the legal issues relating to the establishment, operation and control of management companies are generally outside my Department's area of responsibility my Department is engaging with a number of relevant agencies regarding aspects of the issue, including the Departments of Enterprise, Trade and Employment and Justice, Equality and Law Reform, the Law Reform Commission, the National Consumer Agency. My Department is also engaging with local authorities and the construction industry on the matter.
A Law Reform Commission Working Group is currently examining legal aspects generally regarding management of multi-unit structures and its consultation paper is expected shortly. The Government will consider the recommendations in its final report including the need for any new measures to be taken in this area.
The Property Services Regulatory Authority (PSRA) will have the function of licensing, regulating and dealing with complaints relating to managing agents. These are commercial firms engaged by management companies to carry out day-to-day management and maintenance. The Authority will also have a public information function in relation to property management. The PSRA, and its functions, will be provided for in legislation that is being prepared by the Department of Justice, Equality and Law Reform. I understand that an Implementation Group and a Director Designate are already in place.
The National Consumer Agency is to publish a report on the issue very shortly and also intends to publish a consumer information document. I and the Minister for the Environment, Heritage and Local Government have also responded on the above lines to concerns raised by Deputies in representations on behalf of the constituents, including in relation to the Tallaght Area.
1517 Ms C. Murphy asked the Minister for the Environment, Heritage and Local Government the guidance which has been given by his Department in instances where the estates within which management companies operate are proposed to be taken in charge, and the companies are to undergo a winding up process; if guidance as to the requirement to pay management fees directly prior to the taking in charge of estates has been given; and if he will make a statement on the matter. [29341/06]
Amharc ar fhreagraMy Department issued a circular letter (PD 5/06) to planning authorities on 5 July 2006 regarding planning conditions and management companies. That circular advised planning authorities that they should only attach planning conditions in relation to the ongoing management of shared facilities in circumstances where they judge that those are clearly required for the benefit of residents of an estate. It also advised that the existence of a management company to maintain elements of common buildings, carry out landscaping, etc. must not impact upon the decision by the authority to take in charge roads and related infrastructure where a request to do so is made.
The circular indicated my intention to establish a Working Group, representative of local authorities and a range of other interests, including consumer interests, to look further at this matter. The Working Group will hold its first meeting on 28 September 2006. My Department will bring the issue raised in the Question to the attention of the Working Group.
